Legal Question in Wills and Trusts in Arizona
Estate and trust
Hi!
I live in Arizona. I have six years old son, who will be receiving big sum of money from his grandmother, who passed away last April. The money is still in the Arizona State Retirement account. I would like to set up a trust for him. how does this process works? Does my son have to pay taxes? he is minor. Is conservative shift is better or regular trust? Thank you.
1 Answer from Attorneys
Re: Estate and trust
A minor cannot receive the money, it is necessary to establish a conservatorship to hold and manage the money until your son is 18 years of age, and at that point, he gets the money unless he agrees to leave it in trust as you would advise.
You are advised to go to the Probate Division of the Superior Court and establish a conservatorship for your son, with you as Conservator. Then you can invest and reinvest the money on his behalf. You may also be able to use some of the money or income for his education, support and maintenance (with the permission of the court). The conservatorship will have to file an income tax return and pay any taxes due, state and federal.
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